Holding in Company

CLS Holdings PLC
18 October 2001

LETTER TO CLS HOLDINGS PLC

LETTER DATED 10 OCTOBER 2001

Notification pursuant to s198 Companies Act 1985 ('the Act')


Dresdner Kleinwort Wasserstein Group Limited ('DrKWG') is an indirect subsidiary
of Allianz AG.

The shares in DrKWG are held by Dresdner Investments (UK) Limited ('Dresdner 
Investments'), a direct subsidiary of Zenon Beteiligungs GmbH ('Zenon'), a 
direct subsidiary of Dresdner Bank AG. Dresdner is a direct subsidiary of 
Allianz Finanzbeteiligungs GmbH ('Allianz Finanz') which is itself a direct 
subsidiary of Allianz AG.

DrKWG is the holding company of Kleinwort Benson Investment Management Holdings 
Limited ('KBIMH'), together with its subsidiaries. As a result of s203(2) of the
Act, Allianz AG, Allianz Finanz, Dresdner, Dresdner Investments, Zenon and DrKWG
are interested in the CLS Holdings plc ordinary 25p shares in which KBIMH 
together with its subsidiaries are interested.

Following your recent reduction of issued share capital, we hereby notify you 
that the combined disclosable interest of Allianz AG, amounts to 18,996,022 
shares representing 18.46% (previously 18.083%) of the ordinary issued share 
capital of 102,901,423 shares issued by CLS Holdings plc, as advised by you.

The present position in respect of the disclosable interests of the subsidiaries
of Allianz is as follows: -

-      Kleinwort Benson (Guernsey) Trustees Limited is interested in 18,894,054 
       shares representing 18.361% (previously 17.984%) of the issued capital.

-      Kleinwort Benson Channel Islands Limited, KBIM International Limited and 
       KBIMH are interested in 18,894,054 shares representing 18.361%           
       (previously 17.984%) of the issued capital. The interests of these       
       companies arise as a result of s203(2) of the Act.

Whilst these shares are not beneficially held, we are advised that, in certain 
circumstances, we are required to disclose these shareholdings pursuant to the 
Act.


This announcement is made by DrKWG on behalf of Allianz AG and its subsidiaries.


LETTER FROM DRESDNER KLEINWORT WASSERSTEIN